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WAPCo makes giant stride in oil and gas industry

The West African Gas Company WAPCo has returned to profitability after the storm that hit the Oil and Gas Industry a few years ago.The General Manager, Corporate Affairs, WAPCo, Mrs. Harriet Wereko-Brobby, who stated this in a chat with newsmen in Lagos declared, “Honestly speaking, things have developed since the last time we met, things have developed for us at West African Gas Pipeline Company Limited, and those that have followed our history from the time we started will realize that we have had challenges with gas supply, pipeline breaches here and there. Now we can say that things have greatly improved for us”
“We started with N-gas being our sole shipper and we know the issues we have been complaining about with N-gas. N-gas is the shipper that supposed to ensure gas flow through the WAGP, so that we also make some money. Now we have registered other shippers on the pipeline”, she said. “Currently we have about 5 shippers registered with us on the pipeline and recently we have signed an agreement with one of them Axxela limited. This is a wonderful progress report. The agreement will ensure that very soon they will also flow gas through the pipeline. So, that is something that has happened. Then on our operation team, they have been able to make some modifications in our stations. Before we were restricted on the amount of gas we can release, so anytime that pressure is low we were disadvantaged. Any time it is low, gas couldn’t flow. So they made some modifications and because of it we can flow any amount of gas that is nominated. So that has helped us a lot”, she added. She stated that the company has also expanded the Tema RM station; “you know Ghana is our largest off-taker and Ghana have discovered oil and gas also in the Takoradi area. So they have also decided to use their gas in the Takoradi area, Since WAPCO, the initial concept was that Takoradi will be the main off-take point, so the off-taker in Ghana decided to take off gas from Tema. And so they even funded the Tema RM station. So right now that station has been expanded, it can even take more than we were giving Takoradi. So right now, we are in a good position.” Speaking on legacy debt, she said, about more than 50 percent of the debt has been paid. “And there is no accumulation of debt anymore. Because right now the off-taker is paying for the gas it consumes. So the legacy debt has been re-fenced and they have started paying off. They informed us that they were going to pay off the balance by last month, but it didn’t look like that will happen last year. We are hoping that they will go ahead and settle the rest of the debt, Sometimes first quarter in 2019. But, In the meantime the off-taker is paying for all the gas it is consuming.’ The Company according to her was making money through the delivery of gas right now, and because of that, it has been able to honour its obligations to stakeholders. “So things have improved greatly in our company, Apart from that Ghana decided that it will move their gas from the west to the east for it to be used in the Tema Area, so they are connecting into the West African Gas Pipeline (WAGP) in the west, so that Ghana’s gas from the west can also flow through the pipeline to off-takers in the East of Ghana.” Chukwuemeke Iwelunmo

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